Introduction

This Topic provides an introduction to the Personal Property Securities Act 2009 (Cth) (PPSA) which became operative in 2012. Throughout this Topic we will refer to this regime as the PPSA. The topic explains the background behind the development of the PPS regime and its rationale. The key concepts of the framework of personal property securities under the PPSA including registration, the definition of personal property, security interests, attachment and perfection are explained and discussed. The important process of enforcement of security interests under the PPSA is examined. Lastly, how the PPSA deals with the priority between competing security interests is analysed and the special priority rule for Personal Money Security Interests (PMSIs) is discussed.

NB: The PPSA was reviewed in 2015 and the Final Report of that Review, the Whittaker Report. The findings and recommendation of the Whittaker Report are referred to in Anthony Guggan and David Brown, Australian Personal Property Securities Law, LexisNexis Butterworths, 2^nd ed, Reed International Books Australia Pty Limited trading as LexisNexis, Chatswood, 2016.

Readings:

Personal Property Securities Act 2009 (Cth) (PPSA) (the Ss discussed in Topic 5 and a broad overview of the PPSA generally) https://www.legislation.gov.au/Details/C2018C00093

Robert Chambers, Property Law in Australia, Lawbook Co Thomson Reuters (Professional) Australia Limited, Pyrmont (3rd ed, 2013), Chapter 31-Personal Property Security. [Chambers] (uploaded to Moodle)

[APL 5^th ed] Ch 8 [8.05], [8.76-8.78] (discussing the important case of Re Maiden Civil (P&E) Pty Ltd [2013 NSWSC 852) (uploaded to Moodle)

Warehouse Sales Pty Ltd (in liq) & Lewis and Templeton v LG Electronics Australia Pty Ltd & Ors [2014] VSC 644 (uploaded to Moodle)

Australian Financial Security Authority-Personal Property Securities Register (PPSR) https://www.ppsr.gov.au/

Mirzai, QRC Personal Property Securities Act, LexisNexis Butterworths, Chatswood, 2012.

Objectives

After studying Topic 5 you should be able to:

• Identify the key concepts and framework of the Personal Property Securities Act 2009 (Cth) PPSA which became operative in 2012;
• Appreciate the background which led to the enactment of the PPSA;
• Identify and articulate the importance of registration under the PPSA;
• Appreciate the functionality and processes of the Personal Property Security Register (PPSR) and the PPSR website for registering security interests on the PPSR in accordance with the PPSA;
• Identify and articulate how security interests are recognised under the PPSA;
• Critically evaluate the process and method to enforce security interests under the PPSA; and
• Discuss and show an understanding of the concept of the Purchase Money Security Interest (PMSI).

Summary

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Tutorial

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Version

This unit was last updated on 04.03.2019